Targeted Compliance Framework financial penalties and payment cancellations 001-18030209

A first and a second mutual obligation failure for non-compliance with a compulsory requirement may be applied in the same instalment period for the job seeker. A third mutual obligation failure however, cannot be applied in an instalment period where the second mutual obligation failure has already been applied:

• The first applied mutual obligation failure results in a payment deduction of 50% and Zinnia must still meet all of their compulsory requirements
• A second applied mutual obligation failure results in a payment deduction of 100%. Zinnia will not receive a participation payment for this fortnight, but must still meet all of their mutual obligation requirements
• A third mutual obligation failure cannot be applied for an instalment period where a 100% payment deduction has already been applied
• Despite applied penalties, Zinnia will still need to meet their full monthly points target and minimum job search requirements. Neither the points target nor minimum job search requirement are prorated for periods where a 50% or 100% penalty have been applied

The system automatically removes subsequent mutual obligation failures with an event date in an instalment period in which a second penalty has been applied.

Alyce has committed 3 mutual obligation failures. Alyce's first, second and third penalty form a failure group. Alyce's payment was cancelled when the third penalty was applied.

Alyce applied for a formal review of decision of the third financial penalty within 13 weeks. This decision was set aside by the Authorised Review Officer (ARO). The failure is revoked and Alyce's payment is restored from the date of effect of the non-compliance cancellation.

The system will, however, continue to maintain the 3 penalties as a failure group. This means that if a subsequent financial penalty is applied, it will form a new failure group.

The grouping of penalties ensures that where an outcome of a decision being reviewed is favourable, job seekers will not be adversely affected.